E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Bulls Facing Challenge at 26285 to 26337

June E-mini Dow Jones Industrial Average futures are inching higher on Friday shortly before the official start of quarterly earnings season and the cash market opening. Stocks have been flat-lining all week on well-below average volume as investors await the start of an earnings season that could be the worst since 2016. According to FactSet, estimates of first-quarter earnings for the S&P 500 are expected to have declined 4.2%. The Dow is also in a position to close lower for the week.

At 08:00 GMT, June E-mini Dow Jones Industrial Average futures are trading 26190, up 62 or +0.24%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26509 will signal a resumption of the uptrend. A move through 26060 will indicate the selling pressure is getting stronger. The main trend will change to down on a trade through 25377.

The minor trend is also up. A trade through 26060 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 25377 to 26509. Its retracement zone at 25943 to 25809 is the primary downside target and value area. Since the main trend is up, buyers could come in on a test of this area. Buyers are going to try to form a secondary higher bottom.

The short-term range is 26509 to 26060. Its retracement zone at 26285 to 26337 is the first upside target. This zone is very important because aggressive counter-trend sellers are likely to step in on a test of this area. They are going to try to produce a secondary higher top. Buyers are going to try to drive the Dow through 26337.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to the 50% level at 26285.

Bullish Scenario

A sustained move over 26285 will indicate the presence of buyers. This could lead to a test of the Fibonacci level at 26337. Taking out the Fib level could trigger an acceleration to the upside with 26509 the next major upside target.

Bearish Scenario

A sustained move under 26285 will signal the presence of sellers. If this creates enough downside momentum then look for a break into 26060. Taking out this minor bottom could trigger a further break into a retracement zone at 25943 to 25809.